The Next Next Common Sense
Measurement indicators:
• Structural reconfiguration velocity (how quickly the organiza- tion can realign resources to address new opportunities) • Model appropriateness (how effectively different structural ap- proaches are matched to different business domains) • Collaboration effectiveness across structural boundaries • Leadership versatility (ability of leaders to operate effectively in different structural contexts)
3. From Control to Enabling Constraints
Early milestone: The organization has reduced detailed procedural controls in select domains, replacing them with clear boundaries and principles that enable greater local autonomy. Intermediate milestone: Decision rights have been systematically distributed throughout the organization, with explicit frameworks that clarify where decisions are made at different levels. Advanced milestone: The organization has developed a sophisticated governance system that dynamically adjusts the balance between control and autonomy based on context, capability, and risk characteristics. Manufacturing company Gore exemplifies this progression through its evolution from traditional management to its "lattice" system. The company maintains tight controls around critical parameters like material specifications while creating wide "freedom within framework" for inno- vation, team formation, and market approaches.
Measurement indicators:
• Decision velocity (time required to make and implement decisions) • Authority-expertise alignment (extent to which decision rights align with relevant expertise)
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